Diminishing Returns and Policy Options in a Rentier State: Economic Reform and Regime Legitimacy in Saudi Arabia

Abstract

This paper examines the implications for political legitimacy of the fundamental structural changes taking place in the Saudi Arabian economy. Traditionally the Saudi Royal Family has based its legitimacy on its ability to provide a wide variety of services and subsidies to its citizens. In addition government expenditures in Saudi Arabia have provided the main economic stimulus. With declining oil revenues, diminishing returns on government expenditure and severe cutbacks in economic services to sustain defence expenditures, the Royal Family is losing much of its traditional justification for rule. The paper concludes that the only way the regime will be able to sustain its legitimacy is through opening up the political system to greater participation. This will first involve increased economic freedom, with political freedom following the successful transition to a private sector led economy.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1997
Accession Number
ADA529103

Entities

People

  • Robert E. Looney

Organizations

  • Naval Postgraduate School

Tags

DTIC Thesaurus Topics

  • Abstracts
  • Arabia
  • Corporations
  • Governments
  • Information Operations
  • Investments
  • Political Systems
  • Saudi Arabia
  • Transitions

Readers

  • East Asian Political and Security Studies within the Soviet Union
  • Industrial Economics
  • Nuclear Non-Proliferation and International Security